How can I calculate credit card payment when there are two finance charge percentages?

Question

I have $3336.96 that I have a 23.74% finance charge on and $3179.76 that I have 16.74%. Both are on the same card and the principal will be applied the amount with the lesser finance percentage until that amount is paid first. How can I calculate the amount to pay combined to pay this off in 52 months? I had calculated what it would take to pay each amount off simultaneously but that isn't correct. My present answer is $189.72 per month, but I know that isn't right.

Answer 1

You plan on stringing this $6600 out for more than 4 years? That's a lot of money you're wasting on interest!

Better plan. Throw everything you an squeeze out of your budget at this debt and get it paid off in 2 or 3 years.

Put yourself on a strict budget. Eliminate the extras -- cell phone, eating out, new clothes, etc. Consider ways to come up with more cash -- garage sale, collect alum cans, second job.

Get yourself out from under this debt as soon as you can. And then only charge what you can afford to pay in full every month.

Answer 2

It is a very complicated equation, however if you do the following, you will pay off in less than 55 months: The payoff of the 3179.76 in 27 months ( 1/2 your term) will require a payment of 142.50 You will also have to pay 66.74 interest toward the 3336.96 balance, so a total of 209.24.
The final 27 months if you pay 160.71, you will pay off the total amount. So your estimate of 189.72 for the entire 55 months is very close to being right.